Haryana government has recommended higher collector rates for the Gurugram district, the second modification for the current fiscal year.


Haryana government has recommended higher collector rates for the Gurugram district, the second modification for the current fiscal year. Currently, the state government examines the collector rates, also known as circle rates, that apply to the region twice a year. The collector rate is the minimum valuation at which a property is recorded when it changes ownership, and it is a significant source of revenue for authorities. These tariffs are set by state officials on a regular basis and hence vary from city to city. While the planned collector rates may have an impact on demand in the region, property consultants believe they would enhance the Noida and Greater Noida markets.
 
Points:
 
1. In a statement issued on December 27, the Gurugram administration announced the recommended collector rates for the region's five divisions and four sub-divisions for the second phase of fiscal year 2019-20.
 
2.Gurugram, Sohna, Manesar, Pataudi, and Farrukhnagar are the five divisions. Wazirabad, Badshahpur, Kadipur, and Harsaru are the sub-divisions. The district administration has asked residents to submit their comments and ideas by January 10.
 
3.A higher collector rate, sometimes known as a circle rate, implies more money for the government in the form of stamp duty from property registration and transactions. Many property advisors were taken aback by the decision to double the circular prices in some of Gurugram's key marketplaces.
 
4."As it is, the market's demand and liquidity are both sluggish. This projected increase will affect end-user and investor emotions, as well as the overall prospects of these markets in the New Year "According to Santhosh Kumar, vice chairman of ANAROCK Property Consultants, "The raise will have a detrimental impact on both the primary and secondary property markets."
 
5."The most immediate impact will be on the luxury home market in several expensive locations along Golf Course Road, as well as numerous other sectors in the city," Mr Kumar explained.
 
6.Currently, the Gurugram administration examines the circular rates twice a year, as part of a system implemented in October 2017 to close the gap between market and collector pricing on property sales.
 
7.For the registration of property in the district, a stamp duty of 8% for urban areas and 6% for rural areas applies.
 
8.According to ANAROCK study, Gurugram has the most unsold stock in the whole National Capital Region (NCR), with around 57,950 units as of the end of 2019. Mr Kumar stated that the projected rise in key locations will "only complicate the issue for developers wanting to rid their unsold stock."
 
9.Mr Kumar is one of several real estate specialists who predicted that circular rates would remain substantially constant, if not slightly lower.
 
10."Market rates have barely changed in recent quarters," he noted.